Amazon wants a slice of the Indian food pie, seeks government’s nod to set up food e-retail venture in India

The e-commerce giant-Amazon has applied to the government so as to invest $500 million in a wholly-owned venture in Ind. This venture, if approved, will allow the company to stock locally produced food items and sell them online. This will make Amazon, the first foreign retailer to enter the segment.

An application has been filed with the DIPP by Amazon.

According to a person with knowledge in this, the company plans to invest $500 million over five years and could start selling locally-produced food items within six months of obtaining approval, the person said.

"We are excited by the government's continued efforts to encourage FDI in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision," an Amazon spokesperson told ET.

Amazon currently operates an online platform on which Indian-owned entities can sell products. Flipkart, the country's largest ecommerce company and Snapdeal also operate such platforms.